Your Home- A Ticking Inheritance Tax Timebomb
New research from Stroud & Swindon Building Society reveals that in just eight years house price increases could make the average UK homeowner liable for Inheritance tax (IHT). This shocking research from the UK’s 15th largest building society also showed that this problem would be faced much sooner by homeowners in Greater London (one year), the South East (four years) and East Anglia (six years) if house prices continued to increase at the current rate.
The Stroud & Swindon research also revealed that if the current average annual growth in the IHT threshold continued (3%), even regions with traditionally lower house prices would eventually be affected: Scotland (16 years), Northern Ireland (11 years) and the North West (12 years)
While the timeframe that this research reveals is concerning, it is likely that IHT will hit most households even earlier if they boast the average amount of savings (£17,271**) or have other taxable assets.
Paul Chafer, Sales Director from Stroud & Swindon Building Society comments:
“Many ordinary consumers still assume that they don’t have sufficient assets to be liable for inheritance tax. However, this research shows that in eight years if a person owns the average UK home, they are likely to be liable for inheritance tax at 40% of everything over the IHT threshold.
“This is potentially a huge amount and when consumers have already been paying tax on their income their whole lives, seems a completely unjustified penalty. Therefore, we actively encourage all homeowners to speak to an independent financial adviser to make sure that they are not leaving an unnecessarily high tax bill because they have not received guidance on this issue.”
Sleepers Hill in Winchester Emerges As The Best Street in the UK
65% of Towns Unaffordable for Key Workers
A Guide to UK Buy to Let Mortgages
Finding property to renovate has just got easier! RenovateAlerts searches the internet looking for property for sale thats in need of renovation and emails you links to the latest properties found.
Click here for more information
